Twitter stock nosedives after weak quarter

Twitter Inc. stocks fell by 20% to $ 31.45 apiece at the start of trading according to the New York Stock Exchange. After a couple of hours, the rate of decline slowed down by 18.93% to $ 31.3.

Christopher via flickr

This corresponds to approximately $ 6-7 billion loss in market value. Before the exchange opened in New York, the company was worth $ 30 billion.

At this time, US stock indexes fell by 0.2-0.3%.

The fall in share prices was accompanied by a twofold increase in the volume of transactions with Twitter securities compared to the average value for previous days.

At the same time, the growth in the value of the company's shares from the beginning of the year remains at 35%.

The fall in value began after the publication of Twitter financial statements for Q3 2019.

For the first time since late 2016, Twitter revenue fell short of Wall Street forecasts. Twitter's quarterly revenue grew 9% to $ 824 million from $ 758.1 million for the same period in 2018. Experts surveyed by Bloomberg expected growth to $ 876 million.

The number of active Twitter users in the III quarter grew by 4.3% in quarterly terms to 145 million people a month, and in annual terms - by 17%.

"The 9% revenue growth reflects the September growth in the US, as well as a number of obstacles, including problems with revenue and advertising seasonality in July and August. Revenue is lower than expected, but there are no significant changes in our current investments," the company said in a statement.